Friday, March 27, 2015

There were two provincial budgets came down yesterday. One budget was not a balanced budget with an historic deficit, more spending, and a rise in taxes pretty well across the board. The other budget came in as balanced and a reduction in taxes. One budget came from Quebec and the other one came from Alberta. Guess which one is which.

The one you would think that was balanced and that reduced taxes would be Alberta but it isn't. It's Quebec. The one with more spending and historic deficit is Alberta. Things have been turned upside down. Here is the highlights of both budgets.

EDMONTON – The province unveiled its 2015-2016 budget Thursday afternoon. Here are some of the highlights:

The bottom line

Total
spending of $48.4 billion on revenue of $43.4 billion for a $5-billion
deficit – the largest in Alberta’s history. The deficit will be covered
mainly by the province’s contingency fund.

End of the flat tax

Alberta
will end its 10 per cent flat income-tax rate and phase in two new tax
brackets for those making more than $100,000 or $250,000 a year. The
change will affect about 330,000 workers.

Health levy

Individuals making more than $50,000 a year will have to pay a
health-care levy, effective July 1. The amount will be tied to income
and capped at $1,000 annually. The levy is to be collected through the
income-tax system and won’t be paid by employers.

Gasoline tax

The
gasoline tax jumps four cents a litre on Friday. The government notes
Alberta’s gas tax has not been raised since 1991 and remains the lowest
in the country.

Smokes and booze

It will cost 16 cents
more for a bottle of wine and 90 cents more for a case of 12 beers
starting Friday. The tax on a carton of cigarettes will go up by $5 to
$45.

Tax breaks for the working poor

Families
earning less than $41,220 a year will be eligible for a supplement for
each child, to a maximum of $2,750 each year. The government says about
75,000 families will be eligible.

Fees aplenty

Fees
are going up for everything from camping to court filings and marriage
certificates. Traffic fines are being boosted by an average of 35 per
cent.

Job cuts in government

The government plans to shed
2,016 full-time jobs across all departments. Most of those positions are
already vacant and will not be filled. About 370 layoffs are expected.

Here’s what you need to know:$197.1 billion: Quebec’s gross debt as of March 2014, estimated to reach $210.5 billion by March 2016$80.7 billion: the amount it takes to balance the budget on own-source revenue

Related

$19.4 billion: in federal transfers$2.35 billion: the 2014-15 deficit, as projected last yearREAD MORE:Quebec tables balanced budget as it aims to slice its massive debt11.5: per cent – the corporate general income tax will be reduced from 11.9 per cent starting in 20172019: the year the health tax will be fully eliminated63:
seniors over this age will receive a new tax credit of up to $602 in
2017 and $902 in 2018. For those 65 and over, the amount in 2018 will be
$1,5042: the percentage of expected economic growth0: new taxes

As you can see it's a tail of two budgets. For Albertans cost of living is about to go up because the Premier is punishing us instead of themselves for the state of our economic woes. For Quebecers, cost of living is about to go down. Bazzaro world indeed! Gosh, I miss Ralph!